Overview

Please bear in mind that all investments involve risk and the value of, and any potential income from, your investment may fluctuate and are not guaranteed.

Investment policy
The Company invests globally in companies which have a significant focus on environmental solutions. Specifically, the Company looks to invest across three key areas: infrastructure, resource efficiency and demographics.

The Company’s portfolio has a bias towards small and medium capitalisation companies. It invests primarily in securities which are quoted, listed or traded on a recognised exchange. However, up to 5 per cent of the Company’s Total Assets (at the time of such investment) may be invested in unlisted securities.

Jupiter Asset Management Limited, as the Company’s Investment Adviser, selects each stock on its individual merits as an investment rather than replicating the relevant company’s weighting within the Company’s benchmark index. The Company’s investment portfolio is therefore unlikely to represent the constituents of its benchmark index, but instead is intended to offer a well diversified investment strategy focused on maximising returns from the prevailing economic background.

The Investment Adviser may enter into contracts for differences in order to gain both long and short exposure for the Company to indices, sectors, baskets of individual securities for both investment purposes and for hedging or efficient portfolio management purposes. The ability to maintain a portfolio of both long and short positions provides the flexibility to hedge against periods of falling markets, to reduce the risk of absolute loss at portfolio level and to reduce the volatility of portfolio returns. The portfolio manager may also invest in single stock, sector and equity index futures and options.

Risk is also mitigated by investing mainly in quoted companies on registered exchanges, ensuring full regulatory compliance for all underlying quoted investments. There are no specific stock and sector size limitations within the portfolio, but the individual portfolio manager is expected to provide sufficient stock, sector and geographic diversification to ensure an appropriate trade-off between risk and return within the portfolio. In order to ensure compliance with this objective there is a two tier monitoring system. First, the individual portfolio manager’s portfolio is assessed monthly by the Jupiter Asset Management Limited Performance Committee, which is headed by the Chief Executive of Jupiter Asset Management Limited. Secondly, the Board is provided with a detailed analysis of stock, sector and geographic exposures at the Trust’s regular Board meetings.

Any material change in the investment policy of the Company described above may only be made with the approval of Shareholders by an ordinary resolution.
The trust’s investment focus and strategy

Our approach to sustainable solutions investing focuses on seven themes:

  • Circular economy – solutions for sustainable materials and resource stewardship
  • Clean energy – generation, storage and distribution
  • Water – conservation and management
  • Mobility – technologies and services for sustainable movement
  • Energy efficiency – enabling a low carbon transition
  • Sustainable agriculture, nutrition and health – solutions protecting natural resources and well-being
  • Environmental services – pollution control, testing and impact management

 

The longstanding experience of the team shows that companies focused on solutions in these themes typically fall into one of three ‘lifecycle’ stages:

  • Innovators – typically smaller and nascent companies with new and disruptive solutions that have high potential sales growth but are yet to gain mass market traction
  • Accelerators – mid and large-cap companies that are delivering on their sales growth potential with accelerating market traction of already proven and scalable products and services.
  • Established Leaders -typically larger companies with longstanding products and services in their market, lower levels of sales growth, but a greater potential to return capital to shareholders through dividends.”